Your Investment Expenses Are Deductible, Within Limits

Investment expenses such as investment counseling, office expenses, and management fees are deductible as miscellaneous itemized deductions. You are entitled to deduct investment related travel costs, but not vacation expenses. Your travel expenses to see your accountant or other advisors on tax related matters are deductible. Your travel expenses to attend an investment seminar are not deductible, even though you may see travel industry advertisements to the contrary.

Your total miscellaneous itemized deductions are limited to those expenses in excess of 2% of your adjusted gross income (AGI).

For example: If your miscellaneous itemized deductions are $1,400 and your AGI is $60,000, your deduction will be $200. (Your AGI of $60,000 times 2% equals $1,200. Only your expenses in excess of $1,200 are deductible.)

You can deduct your investment interest expense to the extent of your net investment income. Disallowed investment interest expense can be carried over to a succeeding tax year.

If you would like assistance with your tax planning or filing, please contact Kenneth D. Eichner, P.C.. We are here to see that you pay no more tax than the law requires.